DGAP-News: Activa Resources AG / Key word(s): Preliminary Results
Activa Resources AG releases preliminary 2013 group earnings and
project update for 2014
31.03.2014 / 09:00
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Activa Resources AG releases preliminary 2013 group earnings and project
update for 2014
- 2013 group net income close to breakeven as expected
- US subsidiary raises earnings 300%
- Critical mass in terms of production and revenues reached
- OSR Halliday: 6th horizontal well on production; 7th well to spud in Q2
- New wells at Pill Branch (Projekt X) and Halls Bayou in Q2
- Positive outlook for 2014
Bad Homburg, 31st March 2014. Activa Resources AG, an independent oil and
natural gas exploration and production company, announces preliminary 2013
group net income close to breakeven, in line with previous statements by
management. Accordingly, the company was clearly profitable during the
second half of the year. By achieving critical mass in terms of production
and revenues the company's US subsidairy was able to generate net income of
USD 1.4 million, representing an increase of 300%. 2013 revenues reached
approx. USD 7 million, primarily as a result of two new horizontal wells
(4th and 5th) going on production at OSR-Halliday, the company's main
asset. Both wells continue to produce in line with expectations and have
produced approx. 120,000 BOE and 112,000 BOE to date respectively (approx.
9 months production at both wells). Their cashflow contributions are
significant and both wells have paid out.
Activa also achieved a significant increase in proven oil and natural gas
reserves in 2013. Total 1P reserves increased by 44% to 5.19 million BOE at
January 1, 2014 (vs. 3.60 million BOE one year ago). The value of Activa's
proven reserves increased 4.3 % y-o-y from USD 89.1 million to USD 92.9
million (PV10) at January 1, 2014. This has been achieved in addition to
producing approx. USD 7.0 million from reserves in 2013.
Following the drilling successes in 2013 Activa made further good progress
across its portfolio of oil and natural gas properties during the the first
quarter of 2014. The 6th horizontal well at OSR-Halliday has been drilled,
completed and recently put on production. Within the first days of flowing
back the load water, the well has been producing up to 300 Barrels per day.
The location for the 7th well is under construction and the well is
expected to spud in Q2 as planned. New wells at Project X (Pill Branch) and
Halls Bayou, both located in Texas, are also set to spud in Q2.
Activa's CEO Leigh A. Hooper adds: "The initial performance of the 6th well
at OSR-Halliday is very encouraging. We expect 2014 to be another
successful year for Activa in which we build on our successes of the
previous years. In addition to continued growth in the value of our
OSR-Halliday asset, we are particularly encouraged by the production
results at Pill Branch (Project X). These projects in particular will
generate further revenue growth going forward."
Further details can be found in our 2014 Q1 Newsletter at
www.activaresources.com.
Management
About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as "could," "plan," "estimate", "expect",
"intend", "may", "potential", "should" and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.
Company contact Investor Relations contact
Activa Resources AG GFEI Aktiengesellschaft
Hessenring 107 Am Hauptbahnhof 6
61348 Bad Homburg 60329 Frankfurt
Germany Germany
www.activaresources.com www.gfei.de
Phone: +49 (0)6172-483 2352 Phone: +49 (0)69-7430 3700
FAX: +49 (0)6172-483 2353 FAX: +49 (0)69-7430 3722
lah@activaresources.com activa-resources@gfei.de
End of Corporate News
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31.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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